Wesfarmers delivers $2.9b profit and lifts dividend 7.8% in FY26 results
In its 2026 full-year results briefing, scheduled for 27 August 2026 and covering the 12 months ended 30 June 2026, Wesfarmers reported net profit after tax (excluding significant items) up 8.3% to $2.9b, with revenue rising 3.4% to $47.3b.
Management attributed the result to strong earnings contributions from Bunnings Group, Kmart Group and Wesfarmers Chemicals, Energy & Fertilisers (WesCEF). The full-year ordinary dividend was lifted 7.8% to $2.22 per share.
Separately, shareholders received an additional $1.50 per share capital management distribution paid in December 2025, comprising a capital return of $1.10 per share and a fully-franked special dividend of $0.40 per share. This distribution is distinct from the ordinary dividend.
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FY26 financial performance at a glance
The group presented its headline metrics for the reporting period against the prior comparative year.
| Metric | FY26 | FY25 | Variance |
|---|---|---|---|
| Revenue | $47,274m | $45,700m | +3.4% |
| NPAT (excl. significant items) | $2,874m | $2,653m | +8.3% |
| EPS (excl. significant items) | 253.4cps | 234.0cps | +8.3% |
| Return on equity (excl. sig. items) | 35.5% | 31.2% | +4.3ppt |
| Operating cash flows | $4,272m | $4,568m | −6.5% |
| Free cash flows | $3,992m | $3,446m | +15.8% |
| Full-year ordinary dividend | 222cps | 206cps | +7.8% |
There were no significant items in FY26, compared with $279m in FY25 relating to the Coregas sale and other items. The 6.5% decline in operating cash flows reflected deliberate inventory builds, including investment in additional fertiliser inventory at elevated prices at WesCEF due to supply disruptions arising from the conflict in the Middle East, and higher spodumene concentrate inventory.
How the divisions performed
Management detailed the earnings drivers across the group’s operating divisions.
Bunnings, Kmart and WesCEF drive earnings growth
Bunnings recorded earnings up 5.1% to $2,455m on revenue of $20,399m (up 4.1%), delivering return on capital (ROC) of 69.2%. Kmart Group reported earnings up 6.0% to $1,109m, with ROC improving to 68.3%.
WesCEF delivered strong divisional growth, with earnings up 18.5% to $473m, driven by higher fertiliser and spodumene prices. Lithium earnings of $40m marked a turnaround from the prior year loss of $59m.
Officeworks and Health under transformation
Officeworks earnings declined 22.2% to $165m, reflecting approximately $40m in one-off transformation costs, including restructuring and an ERP transition. Management framed this as investment towards a structurally lower cost base.
Health earnings rose 18.8% to $76m on revenue up 9.1%, supported by Priceline Pharmacy headline network sales growth of 12.7%. Industrial and Safety earnings increased 16.9% to $76m (excluding Coregas), with Blackwoods and Workwear Group transitioning into Bunnings Group on 1 July 2026.
The six divisional earnings figures are summarised below:
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Bunnings Group: $2,455m (up 5.1%)
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Kmart Group: $1,109m (up 6.0%)
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WesCEF: $473m (up 18.5%)
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Officeworks: $165m (down 22.2%)
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Wesfarmers Health: $76m (up 18.8%)
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Industrial and Safety (ex-Coregas): $76m (up 16.9%)
Understanding Wesfarmers’ conglomerate model
Wesfarmers operates as a diversified conglomerate, meaning it holds multiple businesses across different sectors under one listed entity. Its portfolio spans retail (Bunnings, Kmart, Officeworks), chemicals and fertilisers (WesCEF), health and industrial operations.
Diversification can matter to investors because it may support earnings resilience through the economic cycle. Strength in one division, such as WesCEF lithium in FY26, can help offset softness in another. This structure aligns with the “Wesfarmers Way,” whose primary objective is to deliver a satisfactory return to shareholders over the long term.
New growth engines: lithium, retail media and housing
Management outlined several growth platforms positioned to create earnings streams independent of the near-term consumer outlook.
Mt Holland expansion given green light
A Final Investment Decision (FID) was announced on the Mt Holland mine and concentrator expansion. The expansion is expected to double nameplate production of spodumene concentrate to approximately 760ktpa (WesCEF share approximately 380ktpa), with first product targeted for CY30.
First lithium hydroxide (LiOH) product was achieved at the Kwinana refinery in FY26 with the joint venture partner. Ramp-up was affected by intermittent odour issues, with mitigation measures commenced in late FY26.
Mt Holland expansion capital commitments are estimated at $645 million to $715 million for Wesfarmers’ share, funded from existing cash and debt facilities, with construction of the second concentrator targeted to commence in H2 CY2027.
Scaling retail media, marketplaces and AI
The group’s retail media network now spans more than 1,500 instore screens across Bunnings, Officeworks and Priceline. New marketplaces were launched, including the Kmart marketplace and Bunnings’ commercial and services marketplaces.
The company announced the Built Living JV to deliver residential apartments at scale through advanced manufacturing, with establishment of the joint venture subject to certain consents and approvals. According to the presentation, Wesfarmers became the first retail group in Australia to deploy Google Cloud’s agentic AI Shopping Agent across multiple brands.
For readers wanting to understand how these growth platforms fit within the broader long-term capital allocation framework, our deep-dive into Wesfarmers’ 2026 strategy briefing covers the return on equity targets, digital marketplace scaling plans, and the multi-year transformation programs across Kmart and Officeworks in detail.
Balance sheet, dividends and capital returns
The group ended the period with net financial debt of $5.3b (FY25: $4.2b), an increase primarily reflecting the $1.7b capital management distribution paid in December 2025.
Debt to EBITDA stood at 1.9x (FY25: 1.7x), with credit ratings maintained at Moody’s A3 (stable outlook) and S&P A- (stable outlook). The weighted average cost of debt improved to 3.75% (FY25: 3.83%).
Key final dividend details include:
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Final dividend: $1.20 per share fully-franked
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Record date: 2 September 2026
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Payable: 7 October 2026
The presentation stated the group is “well positioned to deliver satisfactory returns to shareholders over the long term,” supported by a portfolio of high-quality, resilient businesses and a strong, flexible balance sheet.
What Wesfarmers expects in FY27
Management provided forward guidance covering trading conditions and investment plans for the year ahead.
For the first seven weeks of FY27, Bunnings sales growth was slightly stronger than in 2H26, assisted by unseasonably dry weather in July. Kmart Group sales growth was in line with 2H26, while Officeworks maintained positive growth, though slightly below 2H26.
Net capital expenditure for FY27 is expected to be between $1,300m and $1,500m, inclusive of approximately $200m relating to the Mt Holland expansion. Production rates at the Covalent Lithium refinery are expected to accelerate through 2H27 as further odour mitigation solutions are implemented, with product qualification to progress.
Spodumene concentrate production at Mt Holland in FY27 is expected to be in line with nameplate capacity, with around half of production anticipated to be sold to market. Management noted that higher costs of doing business, driven by elevated labour, energy and supply chain costs, are expected to persist, to be mitigated through a “People-first, Digitally-enabled” productivity agenda.
The group closed the outlook by pointing to its portfolio of high-quality, resilient businesses, its growth platforms and a strong, flexible balance sheet with significant headroom against key credit metrics.
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